GVSU reports West Michigan economy holds steady amid tariff challenges

West Michigan’s economy has remained flat but stable through October as federal tariffs continue to challenge businesses (Courtesy, pxhere.com)

By WKTV Staff

A report by a Grand Valley State University (GVSU) researcher shows West Michigan’s economy has remained flat but stable through October as federal tariffs continue to challenge businesses.

Brian Long, Director of Supply Management Research at GVSU’s Seidman College of Business, said businesses and purchasing managers continue adjusting to the ongoing effects of established tariffs.

“For the higher tariff costs, some firms have been able to get the seller to absorb all or most of the increase, and others have been able to pass the higher cost along,” Long said.

“But some firms are stuck between a rock and a hard place. They can’t get the seller to absorb the increase, and they can’t pass the higher cost on to the buyer.”

Remaining resilient

Despite the added costs, one of West Michigan’s biggest cyclical industries — auto parts manufacturing — has remained resilient, said Long.

“So far, auto sales are holding up, so our local auto parts suppliers are still doing reasonably well, although some were overpromised business for the EV models, and their production has slowed,” Long continued. “But our overall production index for West Michigan is still currently positive.”

Michigan’s auto parts manufacturing has remained resilient (Courtesy, pxhere.com)

Unemployment concerns

Long said Michigan’s unemployment rate remains an area of concern. The state’s jobless rate held at approximately 5.2% in the latest data, ranking 48th in the nation. Only California and Nevada reported higher rates.

“Unemployment for West Michigan, and especially Michigan as a whole, has crept up on us,” said Long. “Over the past decade, West Michigan in particular was adding jobs like crazy. That has now stopped.”